City officials preparing next year's budget learned Monday they can expect $4.3 million less to spend.

The cuts represent 5.8 percent of the city's general fund and are coupled with increased spending on health care and pensions.

Still, Budget Director Michael A. Townsend said Mayor Don Williamson's proposed budget maintains all city services and does not lay off employees.

Budget time
Now the debate starts on what gets funded and with how much in Flint. The administration called for a $72-million budget Monday. Here's what's next:

• Residents are invited to share their opinions on the budget at a public hearing at 5:30 p.m. May 2 at City Hall.
• Department heads will answer City Council questions May 10, 15, 17 and 22.
• The City Council must adopt a budget by June 4
• The new fiscal year starts July 1.

Townsend presented Williamson's proposed budget to the City Council at a special meeting Monday, giving a first glimpse at the projected financial straits facing the city.

"This proposed budget does not shortchange any of the (city's) services," Townsend said.

The budget presented Monday is a summary of the $72-million budget for the 2007-08 fiscal year. It officially kicks off budget negotiations and debates that will take place over the next two months.

The major street fund - which pays for maintenance and improvements on larger thoroughfares - appears to take the biggest hit in Williamson's budget. Funding drops from $13.3 million to $9.4 million.

Townsend noted that Williamson has invested extensively in streets in past years, and this time "the revenue is not there for us to do that."

Also, the fund that sets aside money to purchase vehicles, such as fire and garbage trucks, would get nearly $1 million less under Williamson's proposal.

City Councilman Scott Kincaid, who is considering a run for mayor, criticized the proposal. He said the city should consider spending more out of its fund balance.

"At a time when our community needs more services, we have a fund balance of $8.9 million," Kincaid said.

He also said he wanted to see more specifics, including planned investments in the city jail, the outdated 911 system or the quality of life for residents.

Townsend said he expects the city to maintain the $8.9-million fund balance through next year's budget.

"As you know, I strongly believe that the surest way to protect our future is through financial strength," Williamson said in a letter to the council.

The council must pass next year's budget by June 4, according to the city's charter.

A public hearing on the budget is scheduled for 5:30 p.m. May 2. Several City Council members encouraged residents to attend and discuss their priorities for city spending.

The proposed budget also came with a warning: It does not take into account a revenue-sharing cut by the state - which some lawmakers have proposed slashing by 10 percent.